Another new regulation which was passed by the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) in December of last year is OJK Regulation No. 29/POJK.04/2015 regarding Issuers or Public Companies Which Are Exempted from Reporting and Announcement Obligations (“Regulation 29/2015”).
The reporting and announcement obligations meant by Regulation 29/2015 are obligations imposed on issuers or public companies which securities and shares are registered at the Indonesian Stock Exchange. The reporting obligation is the obligation to submit to OJK their regular financial reports comprising (i) semi annual financial reports; (ii) annual financial reports; and (iii) annual reports. The announcement obligation is the obligation to announce the aforementioned reports to the public by publishing them in their website or in a newspaper.
To be granted the exemption, an issuer or public company must meet the following conditions/qualifications:
- All of its business licenses are no longer valid;
- It has been declared bankrupt by way of a valid court decision; or
- It meets 3 of the following 6 conditions:
- It has not been in full operation at least in the last 3 (three) years;
- Its business activities have been restricted by the authorities at least in the last 3 years, resulting in the disruption of its business operation.
- Its business activities have been suspended;
- It has not maintained correspondence with the OJK for at least 3 (three) years.
- None of its directors, commissioners or main shareholders could be contacted in the last 3 (three) years.
- It has been unregistered from the Indonesian stock exchange
The exemption must be confirmed by OJK by way of an OJK decision letter.
Issuers or public companies which have been exempted from the reporting and announcement obligations but currently no longer meet the above conditions/qualifications will be declared/confirmed by OJK as no longer qualified for the exemption, resulting in that the obligations to submit their regular financial reports shall be re-applied to them. Regulation 29/2015 sets out the sanctions for no longer qualified issuers or public companies which do not comply with the reporting and announcement obligations.